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AIM-listed UK Gas and electricity supplier Yü Group (LON:YU.) has seen share prices plummet by 78.24% to 129.50p after management said that they have discovered causes for concern linked with recognition of historic accrued income, trade debtors’ impairments, and gross margins.
The board believe that these issues will lead to a drop in profitability of around £10 million relative to prior market expectations. Chief executive Bobby Kalar commented: “As founder and majority shareholder, nobody is more disappointed in this development than me. Our booked revenue from new sales remains strong and contracted revenue for 2019 is already £67 million as at the end of September 2018. We have improved internal controls around working capital management and the Board is absolutely focused on restoring the profitability of the business.”